Posted by Colin Lambert. Last updated: July 19, 2026
North American corporates are delaying investment decisions due to US policy indecisions, and reducing their levels of FX hedging, according to the latest MillTech North America Corporate FX Report 2026.
The report, the findings of which, MillTech says, reveal a corporate FX market in recalibration, also finds that 90% of respondents said they had delayed investment decisions over the past year, with 39% saying these have been delayed “significantly”. Central bank policy is the biggest external factor influencing FX hedging strategy, with 38% of respondents citing it, followed by US tariffs and trade policy at 33% and Middle East tensions at 28%.
This uncertainty is feeding directly into corporate operations, the report states, with 81% of firms saying recent dollar volatility has led them to adjust sourcing or manufacturing strategies in ways that impact FX transactions, including 32% that have significantly altered their supply chain.
Dollar volatility is also creating varied outcomes across the region, with 72% saying it has had a positive impact on FX returns, while 19% report a negative impact. Hedging remains important but has dropped as firms recalibrate against an uncertain backdrop, with 82% of North American corporates hedging forecastable currency risk, down from 91% in 2025, but broadly in line with 2024 and 2023. Among firms that do not currently hedge, 72% are now considering doing so given market conditions, the highest level in four years, suggesting the drop could be temporary, MillTech observes.
There are ongoing cost pressures, though growth has eased slightly. The mean increase in hedging costs was 52% in 2026, down from 76% in 2025, while 8% of firms say hedging costs have more than doubled. Firms are also adjusting strategies in response to policy uncertainty, with 48% planning to increase hedge length and 47% planning to increase hedge ratio.
Other findings of the report are that while 55% of respondents are now using online user interfaces, 50% also use email to instruct transactions, more than double the 24% in the 2025 report. Phone use has also risen, albeit by less, and is now used by 33% of respondents.
In spite of the rise of UI trading, the report also cites a “lack of real-time data and transparency” as the top operational challenger, cited by 28% of respondents, just in front of getting comparative quotes and onboarding LPs (both at 26%).
Price discovery is the top process being considered for automation (48%), followed by risk identification (43%) and trade execution (43%). MillTech says almost every respondent is exploring AI, with process automation and risk management among the leading use cases. However, scaling AI safely remains a challenge, with model risk/governance concerns (19%), cyber/privacy concerns (18%), and integration (14%) the biggest barriers, it adds.
“North American corporates are facing a market where policy uncertainty is delaying investment decisions and reshaping business strategy,” says Eric Huttman, CEO of MillTech. “FX risk has become a boardroom issue. Our research shows that there is no single FX playbook that works for every corporate. Some firms are benefiting from dollar volatility, others are being hit hard by it. The firms that come out ahead will be those that build the right setup for their own exposures, combining disciplined hedging, multi-bank access, real-time visibility, stronger governance and intelligent automation.”
